Refrigerators, drilling machines, automobiles, trucks, excavators, harvesting machinery, and airplanes—what do all of these machines have in common?
OEMs have a ton of systems in use and tend to offer a variety of applications to their dealers. Availability from their parts distribution centers sits comfortably above 90%–and yet, customer demands are still not met.
In the machine manufacturing industry, Original Equipment Manufacturers (OEMs) and their independent service channels face significant challenges due to fragmented service solutions.
OEMs offer their dealers a wide range of applications, including order systems, service dispatching, warranty claim systems, and numerous other services.
The aftermarket service industry offers OEMs a lucrative opportunity to better meet customer needs.
Despite this, the average manufacturer is only capturing 25% of its customer’s total service spending on its products. This not only loses you valuable profit margin, but also contributes to your competitors’ aftermarket business. A lose-lose.
AGCO had several burning issues they needed to address. AGCO completely lost visibility over its >2.000 various dealers and distributors, their stocks and sales, as well as their service levels, once the produced equipment and parts had left manufacturing.
Inventory management is a critical component of any heavy equipment OEM’s business, especially when it comes to spare parts components which typically have to be available at any given moment.
However, this is easier said than done. Having the right parts at the right time in the right place to ensure high fill-rates and limited downtime requires a lot of connectivity and visibility.